On November 12, local time, Pascal Soriot, the Global CEO of AstraZeneca, publicly responded for the first time to the detention of the company's China President, Wang Lei. Soriot stated, "Wang Lei is discussing the matter with his lawyer, and the company does not have any new information regarding the case."

Soriot made these comments following the release of AstraZeneca's third-quarter financial report. He emphasized, "We take issues related to the Chinese market very seriously and are taking measures to enhance compliance." However, he denied that AstraZeneca's headquarters lacked oversight on compliance matters. He noted that the company has over 16,000 employees in China and lamented that some individuals may succumb to "temptation" to maximize sales.

Moreover, he mentioned that AstraZeneca has strengthened its compliance team in China, which consists of over 200 members, and has introduced resident compliance officers who use artificial intelligence to review expense reports from sales personnel and monitor any inappropriate conduct.

It is worth noting that on November 12, China's National Health Commission held a symposium for pharmaceutical companies, inviting both domestic and foreign enterprises, where the importance of "conducting marketing in compliance" was emphasized.

According to industry sources reported by the First Financial journalist, the day after AstraZeneca announced Wang Lei was under investigation, senior executives from the company's headquarters traveled to China to address related issues, although details of those negotiations remain unclear.

Soriot emphasized that the company remains committed to the Chinese market in the long term, and plans to build a $450 million factory in China have not changed. He also stated that AstraZeneca has never publicly considered splitting its China business.

On November 12, AstraZeneca reported better-than-expected third-quarter earnings and raised its annual revenue and profit forecasts. The financial report revealed that AstraZeneca's third-quarter revenue reached $13.6 billion, with sales in the China division growing 15% to $1.7 billion, accounting for approximately 12% of the company's total revenue.

This growth was attributed to strong demand for its oncology and rare disease medications. In the third quarter, AstraZeneca's oncology division saw a sales increase of 21% to $5.6 billion, making up over 40% of total revenue. Two key contributors to the growth in the oncology division were the drugs Tagrisso and Enhertu.

However, since the end of last month, AstraZeneca's stock price has dropped more than 10%, primarily due to uncertainties surrounding the company's business operations in China.

On the evening of October 30, AstraZeneca announced that Wang Lei was under investigation. On November 6, the company held an emergency investor meeting to disclose that Wang had "been detained," though AstraZeneca emphasized that the investigation by Chinese authorities is focused solely on individual executives and does not involve the company's business.

During the investor meeting on November 6, AstraZeneca revealed that in addition to Wang Lei, two current and former executives are also under investigation, relating to the illegal import of drugs from Hong Kong to mainland China.

According to insights from certain institutional investors, AstraZeneca also stressed that while China has been a major growth driver for the company, growth has slowed, and the company has cautioned investors that profit margins in the Chinese market are affected by region-specific factors, including approval times, negotiations for the national medical insurance catalog, centralized procurement, and rising sales and marketing expenses related to drugs.

Meanwhile, AstraZeneca is increasing its investment in the U.S. market. The company recently announced a $2 billion investment to expand its facilities for the research and production of biologics and cell therapies in the United States. Soriot stated that the company "supports America's leadership in healthcare innovation" and is enhancing the development of cutting-edge therapies. AstraZeneca now anticipates that by the end of 2026, its total investments in the U.S. will reach $3.5 billion, with new investments located in manufacturing bases in Maryland, Texas, and California.

https://finance.eastmoney.com/a/202411133237713055.html